• Thu, 17 Oct 2019, 10:30 AM
  • All times are UTC
  • Edition:
    International
Copy link
Increase text size
Decrease text size
Link copied

Facebook to face 26 central bank officials over Libra crypto project

“Libra Coin 3D Render” by BTC Keychain is licensed under CC BY 2.0 at https://www.flickr.com/photos/btckeychain/48087545832

Mon, 16 Sep 2019, 03:07 am UTC

Facebook is set to face global regulators on Monday to answer questions about its Libra cryptocurrency project, amid warning from EU governments that the digital currency poses threat to financial stability.

According to a report by Financial Times, officials from 26 central banks, including the U.S. Federal Reserve and the Bank of England, will meet with representatives of Lira in Basel.

The meeting will reportedly take place between Libra and the Committee on Payments and Market Infrastructure, a Bank of International Settlement’s forum. Facebook officials will be quizzed about the scope and design of the cryptocurrency, with a report being filed for G7 finance ministers in October.

Given the current issues Facebook and Libra are facing, European Central Bank’s Benoît Coeuré, who will chair the meeting, warned: “the bar for regulatory approval will be very high.” The governments have expressed “strong concerns” over Libra and other digital currencies that are capable of destabilizing the financial system and weaken the sovereignty of governments and central banks.

Despite facing severe backlash, Libra founders welcomed the upcoming forum with regulators.

In the nearly three months since the intent to launch the Libra network was announced, we have prioritized engagement with regulators and policymakers around the world… we… have deliberately designed a long launch runway to have these conversations, educate stakeholders and incorporate their feedback in our design,” Libra said.

The upcoming meeting comes after French Finance Minister Bruno Le Maire warned that France will not authorize the development of Libra on European soil. He stressed that the digital currency threatens the monetary sovereignty of governments and causes issues on money laundering, terrorism financing, and market dominance. He also voiced concern that Libra can potentially help people abandon national currencies during a crisis, complicating the efforts of a government to manage the economy.

On the other hand, despite Libra’s controversial status, Swiss Financial Market Authority (FINMA) director Mark Branson weighed the pros and cons of Libra. He further noted that the office is not obliged to “facilitate” the project, adding that it has to “explain and apply the existing rules” instead.

But I have a hard time thinking that Switzerland should become a second-rate financial center just to avoid such risks. The decisive factor is whether Switzerland has credible regulation and supervision as well as appropriate framework conditions for large players,” he said.

Amid the issues it faces, the head of the Libra Association said that Libra cryptocurrency would be launched in the latter half of 2020.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (BTC) $8,120.40 (-0.58%)
  • Ethereum (ETH) $178.15 (-0.84%)
  • XRP (XRP) $0.296300 (+2.28%)
  • Bitcoin Cash (BCH) $219.97 (-1.43%)
  • Litecoin (LTC) $53.96 (-1.75%)
  • Bitcoin (BTC) $8,120.40 (-0.58%)
Oct 17, 2019 (Thursday)
09:32
Burj Khalifa owner Emaar taps JPMorgan’s Quorum blockchain for new rewards and loyalty platform
07:42
Towo Labs secures investment from Xpring to develop XRP hardware wallet firmware
07:22
Crypto Technicals: Bitcoin cash (BCH) finds strong support at 208.85, break below to strengthen bearish bias
07:03
US Fed actively looking and debating digital currency issuance: Dallas Fed President Robert Kaplan
07:03
Crypto Technicals: LTC/USD pauses at trendline support (52), further weakness on charts
05:50
EY launches blockchain solution to enhance public fund management
05:49
Crypto Technicals: ETH/USD set to extend weakness, eyes trendline support at 158
04:43
Crypto Technicals: BTC/USD finds major support at 55W EMA (7762), break below to plummet prices
04:39
Natixis, Raiffeisen Bank and others participate in global tokenised collateral trial on R3’s Corda
Oct 16, 2019 (Wednesday)
14:31
Bermuda starts accepting stablecoin ‘USDC’ for tax payments
13:19
Oxford English Dictionary officially adds ‘satoshi’
11:26
Crypto Technicals: XMR/USD holds above trendline support, 'Bullish Divergence' raises scope for upside
11:17
South Korea seeks to transform trade finance using blockchain technology by 2021
10:43
Crypto Technicals: XRP/USD finds stiff resistance at 21W-EMA (0.3008), break above to accentuate gains
09:51
Layer1 raises $50M from Peter Thiel and others to build bitcoin mining facility in Texas
08:39
Crypto Technicals: LTC/USD consolidates break below 20-DMA, on track to test trendline support at 52.25
07:41
Ford trials geofencing and blockchain technology to optimize energy efficiency of vehicles
06:54
India's YES Bank wants to lure more clients for its next planned blockchain model
06:52
Crypto Technicals: ETH/USD hovers around 20-DMA, break below will support further weakness
05:43
SEC solicits comments on Wilshire Phoenix Bitcoin and T-Bills ETF proposal
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft